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PMP ordered to pay taxes on imported rice

The Court of Tax Appeals has ordered a Pangasinan based-company to pay over P4 million in taxes for its importation of 603.15 metric tons of white rice in 2016.

In a 14-page decision dated November 18, Associate Justice Jean Marie A. Bacorro-Villena of the tax court’s Second Division directed Progressive Milling Corp. to pay assessed customs duties covering 603.15 MT of white rice worth P4.011 million with a fine equivalent to 30 percent of the deteriorated value, plus storage fees.

The Bureau of Customs was also ordered to release the imported white rice shipment to the company once the payment has been made.

In 2016, the company was granted a certificate of eligibility to import 250 MT of Thai white rice and paid in advance all duties in the amount of P64.45 million.

On Dec.15, 2016, the shipment of white rice arrived at Poro Point, La Union and before its exit from the Customs’ territory, its release was stopped upon discovery of an excess of 603.15 MT not covered by an import permit.

A ruling by the Bureau of Customs Legal Service ordered the forfeiture of the rice in favor of the government, prompting the company to bring the case to the tax court.

Associate Justice Juanito C. Castañeda concurred in the decision.